Netflix stock was down more than 10% in after-hours trading Wednesday following the company's announcement that it lost over 100,000 U.S. subscribers last quarter. It was expected to gain roughly 300,000 subscribers.

Why it matters: Analysts weren't expecting the streaming giant to lose subscribers, especially since rival streaming services, like HBO Max, Disney + and NBCUniversal's new service, aren't expected to launch for another year or so.

By the numbers, via CNBC:

  • Earnings per share: 60 cents vs. 56 cents expected, per Refinitiv consensus estimate.
  • Revenue: $4.92 billion vs. $4.93 billion expected, per Refinitiv.
  • Domestic paid subscriber additions: A loss of 126,000 vs. a gain of 352,000, forecast by FactSet.
  • International paid subscriber additions: 2.83 million vs. 4.81 million, forecast by FactSet.

Details: Netflix also announced that it missed on guidance for international subscriber additions. Investors were hoping Netflix could continue to grow international subscribers while domestic subscriber growth stalled.

  • The Los Angeles-based company also missed slightly on revenue, but exceeded earnings per share.

Yes, but: Netflix is estimating higher third-quarter subscriber growth in light of new popular content additions, including the third season of "Stranger Things," which was released in early July, as well as new seasons of "The Crown" and "Orange is the New Black."

Be smart: Netflix also increased prices this past quarter, which may have also impacted subscriber growth.

The big picture: The company is also struggling to convince investors that subscriber growth won't be impacted by the loss of hit catalog series, like "The Office," which is moving to NBC, and "Friends," which will be available on HBO Max.

  • In a letter to investors, Netflix said it has been moving its own exclusive content to tighter windows and that it doesn't think losing catalogs will hurt its business in the long term.
  • "From what we’ve seen in the past when we drop strong catalog content (Starz and Epix with Sony, Disney, and Paramount films, or 2nd run series from Fox, for example) our members shift over to enjoying our other great content," the letter said.

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Facebook boycott organizers share details on their Zuckerberg meeting

Facebook is in the midst of the largest ad boycott in its history, with nearly 1,000 brands having stopped paid advertising in July because they feel Facebook hasn't done enough to remove hate speech from its namesake app and Instagram.

Axios Re:Cap spoke with the boycott's four main organizers, who met on Tuesday with CEO Mark Zuckerberg and other top Facebook executives, to learn why they organized the boycott, what they took from the meeting, and what comes next.

Boycott organizers slam Facebook following tense virtual meeting

Illustration: Sarah Grillo/Axios

Civil rights leaders blasted Facebook's top executives shortly after speaking with them on Tuesday, saying that the tech giant's leaders "failed to meet the moment" and were "more interested in having a dialogue than producing outcomes."

Why it matters: The likely fallout from the meeting is that the growing boycott of Facebook's advertising platform, which has reached nearly 1000 companies in less than a month, will extend longer than previously anticipated, deepening Facebook's public relations nightmare.

Steve Scalise PAC invites donors to fundraiser at Disney World

Photo: Kevin Lamarque-Pool/Getty Images

House Minority Whip Steve Scalise’s PAC is inviting lobbyists to attend a four-day “Summer Meeting” at Disney World's Polynesian Village in Florida, all but daring donors to swallow their concern about coronavirus and contribute $10,000 to his leadership PAC.

Why it matters: Scalise appears to be the first House lawmakers to host an in-person destination fundraiser since the severity of pandemic became clear. The invite for the “Summer Meeting” for the Scalise Leadership Fund, obtained by Axios, makes no mention of COVID-19.